A one-year extension is necessary because officials discovered last year they failed to apply for $1.3 million in state reimbursement for the project over the past nine years. Without passage of the extension, the town has to make a $580,000 cash payment.

Miller said the town has contingency plans should the state not grant the extension. He said taxpayers will not be affected.

Miller said he is working with the town's investment adviser to devise a short-term financing plan to pay the remainder of the school debt by May 1.

"The best possible scenario is for the state to grant the extension," Miller said. "If that doesn't happen, we look to short-term financing, and worst case scenario, we would go to the general fund, but we are working to do whatever we can to not use the general fund," which has a balance of $3.35 million.

Kane and Conroy introduced bills in January to allow the town to "renew temporary notes for a one-year period."

"This is a simple bill that will save Seymour over half a million dollars," Kane testified Monday, according to a press release.

Miller said the town was aware it had to apply for the reimbursement, but was unaware of the 10-year time limit.

Miller has directed Tony Casserta, the town's director of operations, to determine why the town failed to apply for the reimbursement.

"I'm not pointing fingers or placing blame on anyone, but we need to do a little investigation, for lack of a better word, to see what may or may not have happened," Miller said.

He said procedures have been instituted to ensure such an oversight doesn't happen again.

Conroy said she wasn't yet sure when the committee will vote on the special legislation.